Can you eliminate credit card debt by declaring bankruptcy?
Can an individual eliminate credit card debt by declaring bankruptcy? I didn't think you could wipe it out, just get the bill collectors off your back. But, someone told me that it depends on which chapter of bankruptcy you use. The right one WILL eliminate credit card debt. I know someone who has $80,000 in credit card debt and they are trying to do that to get rid of that debt! Is it really possible? Are there any restrictions in doing this. Can you ever get a credit card again if you do it? If you file bankruptcy to eliminate all debt, do you have to give up ALL of your possessions? Will you have anything left? This is for a friend of mine (really). They don't own a home. They have 2 cars and some furniture and A 401k plan. Between the two of them they make about $40,000 a year. I don't see how debt consolidation will help them How could they EVER pay off $80,000!?! They had a house but they used up all the equity in it over the years and sold it recently and broke even on the deal, ending up with NOTHING! What a mess! I just didn't think they could wipe out their credit card debt! And, it really isn't fair to the rest of us that pay our bills!
Asked By: ol_skater_boy - 8/10/2007
Best Answer - Chosen by Asker
There are a number of factors involved... More
Answered By: Studly - 8/10/2007
Additional Answers (4)
hey before you do that, pls be guided by this resource
Answered By: Trish L - 8/10/2007
Bankruptcy can eliminate all debt including credit card. The court looks at your circumstances and decides whether you are eligible to file Chapter 7 or Chapter 13. In some cases, Chapter 13 pays every penny back... More
Answered By: bdancer222 - 8/10/2007
Yes, credit card debt is dischargeable in chapter 7 bankruptcy. The court will seize all your assets, liquidate them to pay off as much of the debt as possible, and discharge the rest. The only assets that are exempt are the necessities of life, such as clothes, food, a small amount of equity in your home and car... More
Answered By: gomanyes562 - 8/10/2007
Donot go for bankruptcy it will stay on your report for another 7-10 years so be careful about it.You can consult with a debt consolidation agency but all are not good . Try to get some who are BBB online registered organisations and are member of US chamber of commerce and then apply online and get their help. They... More
Answered By: John - 8/10/2007
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